John had an excellent job, and was earning a larger than average salary. He managed his finances based on how much he was taking home, not unlike a lot of people. Over the years, John had accumulated a fairly hefty unsecured debt, in addition to the mortgage on his house, which was also the family home, and a very nice one it was too. He was not concerned about his high level of borrowing, on personal loans and credit card debt, since his salary more than covered the monthly repayments. All in all, things were pretty good for John.
Life has a nasty habit of springing surprises on you when you least expect them, and unfortunately this is exactly what happened. Sales were down at the company where he worked, and John became one of the casualties when he lost his job. Although he immediately set out to find a new job, and was soon rewarded when he rejoined the ranks of the employed, he was unable to find anything that was even close to his previous salary.
The mortgage still needed to be paid, otherwise the family may be faced with repossession, and the credit cards, personal loans and other household bills also had to be met. By this time, he had accumulated over £100,000 in unsecured debt, and there was no way he could afford all the repayments.
John needed some sound debt advice, and he called The Debt People. He wanted to get more information on Debt Management Plans, and the implications of entering an IVA. After a thorough analysis of his financial situation, we advised that the best solution would be an IVA. The IVA was approved by John’s creditors, leaving him with a single, affordable monthly repayment to cover all of his unsecured debts. Approximately £60,000 of the debt will be written off, and after 60 months, the IVA will be at an end.
If you would like IVA advice, call the number at the top of this page.